Boohoo is set to acquire Nasty Gal and its assets for $20 million (£16 million) by the end of February 2017. The acquisition has been approved by a US bankruptcy court, Nasty Gal’s intellectual property assets and customer databases are included in the deal
Founded by Sophia Amoruso in 2006, Nasty Gal quickly grew from a vintage Ebay store to a multimillion dollar company, with sales of $100 million in 2012.
Her New York Times bestseller “#Girlboss” helped Nasty Gal attract a strong fan base and loyal customers, however the brand ran into some difficulties last year.
After Nasty Gal filed for Chapter 11 bankruptcy in November, the company asked the U.S. Bankruptcy Court to shut its stores across the country in West Hollywood and Santa Monica.
The business has also given notice to 70 employees at a distribution centre in Kentucky.
Nasty Gal is ranked No. 98 in the Internet Retailer 2016 Top 500 Guide and grew its online sales to an estimated $384 million in 2015, up 20% from $320 million in 2014.
The online retailer boasted an average online order value of $200 (£160) in 2015 compared to $79 euros (£63) for Boohoo.
The deal will mark Boohoo’s second acquisition within the past year. The company also acquired a stake in growing fashion brand PrettyLittleThing for £3.3 million in December 2016.
Boohoo has confirmed that Nasty Gal will continue to operate as a standalone pure-play e-commerce site.
A Boohoo spokeswoman said: “Nasty Gal has developed an extremely distinctive style which has become synonymous with the brand. Its loyal customer base and unique brand naturally complements the Boohoo offer, bringing something different to the customer, whilst creating increased global opportunities for growth.”